Market Update
Friday March 24th, 2011 5:31 PM ET
By John Sauro
Bonds Break Below Support
After 5 days of losses,Bonds closed well below the 25-day MA for first time in a month – not a good for rates. However prices held onto support at the 50-day Moving Average.The 4% coupon fell 19bp to end at 98.31.
The Bond has lost 130 basis points over the last seven days. So, instead of kicking yourself for not locking into a rate back then, you should consider locking now, especially, since Bonds fell below the 25-day moving average. A break below the 50-day moving average could result in further losses of 80 basis points before reaching the next support level, further increasing interest rates.
Existing home sales dropped 9.6% to a seasonally adjusted rate of 4.88 million in February from an upwardly revised 5.40 million in January and are 2.8% below the 5.02 million pace in February 2010. However, sales in certain areas of the tri state region are doing better.
Update on FINREG (Financial Regulation)
Protect your homes value and your right to affordable home financing.
Senatorm Mark Pryor is the latest to request the Fed delay reul 226.
It appears that short of an act of Congress, the law suit filed against the Fed is the last chance to stop or delay this rule.
Go to www.RepealFinreg.com and see why these regulations will further cripple the lending and housing markets.